1. Field of the Invention
This invention relates generally to commercial transactions, and more particularly to extreme capacity management in an electronic marketplace environment.
2. Description of Related Art
Companies often experience cycles in which the companies have either excess capacity or under capacity over an extended period. As an example, a manufacturing company may manufacture more products than it has orders for, resulting in an excess capacity situation. Alternatively, a manufacturing company may manufacture too few products to meet its orders, resulting in an under capacity situation. Similar undesirable capacity mismatches may occur with respect to wholesalers, retailers, and other types of companies that must endeavor to match their capacity with demand. Relatively short term excess or under capacity may often be addressed using a factory planner or other planning engine to bring capacity in line with the demand within one or two planning periods. For example, a factory planner may cause a decrease in production in one or more subsequent periods to offset excess capacity in a current period, such that by the end of one or two periods the excess capacity has been eliminated. Alternatively, under capacity in a current period may be addressed through increased production for one or two subsequent periods. Once capacity returns to the desired level, the manufacturing of products may continue as before.
Such techniques often have a number of inadequacies. First, taking a factory as an example, decreasing or increasing production to address capacity issues may require operating the factory under less than optimal conditions. The likely result is increased overhead or other indirect allocation of resources, which negatively impacts the bottom line. Second, although a planning engine may be able to provide notification when the capacity is far above or below what is necessary to match demand, the planning engine will be unable in general to provide a solution for resolving the capacity extreme. The company is left to find an acceptable solution on its own. Doing so typically requires experienced personnel to devote valuable time in finding other companies to accept the excess capacity or provide the under capacity. Even experienced personnel may not be aware of all potential buyers or suppliers or, more importantly, the buyers and suppliers that have compatible capacity at the particular time. These and other deficiencies have made previous techniques for addressing capacity extremes inadequate for the needs of many companies.